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SSC CPO 2025 PYQ — Question 96

SSC CPO - 9 Dec 2025 - Shift 2 • General Awareness • Q96

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Which of the following statements about public sector industries is correct?

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Correct answer: C

Explanation

Answer: They are owned and operated by government agencies.
Explanation:

  • Public Sector Undertakings (PSUs) are industrial or commercial institutions where ownership, management, and control rest with the Central Government, a State Government, or jointly with both. The primary objective of these industries is not merely to earn profits, but rather to ensure public welfare and the balanced economic development of the country. In India, the Railways, BHEL, SAIL, and the Department of Posts are prime examples of such undertakings.

Analysis of Other Options:

  • Option 1 (Incorrect): Industries owned by private individuals are referred to as the 'Private Sector' (e.g., Reliance, Tata).
  • Option 2 (Incorrect): Public sector industries operate entirely subject to government regulations and parliamentary accountability.
  • Option 4 (Incorrect): These industries can be located in both rural and urban areas. In fact, large public sector undertakings are often established in strategic locations to facilitate the development of backward regions.

Additional Points:

  • Classification: In India, Public Sector Enterprises are categorized into 'Maharatna,' 'Navratna,' and 'Miniratna' categories based on their profitability and performance.
  • Historical Context: The Industrial Policy Resolution of 1956 (IPR 1956) accorded the public sector the 'commanding heights' within the Indian economy.
  • Current Status: Through its disinvestment policy, the government is now reducing its stake in these undertakings to encourage private investment.

Potential Exam Questions and Answers:
Question: How many 'Maharatna' companies are currently in India?
Answer: According to the latest data (2025-26), there are 13 Maharatna companies in India (e.g., NTPC, ONGC, IOCL).
Question: What is the process of selling government equity in Public Sector Undertakings called?
Answer: Disinvestment.
Question: Which industrial policy is referred to as India's 'Economic Constitution'?
Answer: The Industrial Policy Resolution, 1956.